SEC Fines DKR Oasis

Jun 13 2008 | 10:55am ET

The Securities and Exchange Commission has issued cease-and-desist proceedings against DKR Oasis Management Company, a global hedge fund shop.

According to the SEC, DKR Oasis, which manages long/short equity, volatility and convertible arbitrage investments, shorted securities during the five business days before the pricing of the offering, and then covered the short positions with securities purchased in the offering, earning a profit of $185,000.

Specifically, following the market close on May 10, 2005, shares of Satyam Computer Services were offered on a follow-on basis at $21.50 per American Depositary Receipts. On the previous day, DKR Oasis shorted 100,000 Satyam ADSs at $23.35 per ADS and one day after the offering bought 200,000 ADSs at $21.50 per ADS in the offering. It used 100,000 of the offering ADSs to cover its short position created during the restricted period and made a profit of $185,000.

DKR Oasis is ordered to pay disgorgement of $185,000, prejudgment interest in the amount of $37,413, and a civil money penalty of $60,000 to the U.S Treasury.


In Depth

Debunking Conventional Investment Wisdom

Feb 8 2017 | 3:22pm ET

Due diligence in the hedge fund world has long involved some combination of the...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

iCapital Network: The Trump Effect On Direct Lending

Feb 23 2017 | 4:21pm ET

The arrival of the Trump Administration has raised questions among private debt...

 

From the current issue of